PROS Study Reveals Critical Price Optimization Success Factors

HOUSTON--(BUSINESS WIRE)--PROS, a world leader in pricing and revenue optimization science and software, today announced the release of the PROS Pricing Challenges Study. This survey is based on responses from more than 100 senior executives from over 20 countries who attended the PROS 14^th Annual Summit on April 20-23, 2008. The results reveal broad agreement across multiple industries on key findings critical to the success of any pricing and revenue optimization initiative.

Companies increasingly understand the power of delivering optimized prices to the point where a deal is negotiated - in real time

“An inability to rapidly update pricing in response to market forces leaves money on the table,” said Jeff Robinson, Senior Vice President, PROS. “And the inability to price based on value, versus simple cost-plus models, means many companies are pricing deals and contracts and creating offers that may lack critical cost-to-serve.” In this case, these companies are not leveraging a science-based approach to pricing. In both cases, profit leaks create missed opportunities. PROS found over 60% of respondents indicate rapid price response and value-based pricing are critical to effective Price Optimization.

Organizations who are implementing pricing software are moving toward systems with science-based optimized prices

“The data points to a tremendous opportunity for improvement,” said Bert Winemiller, PROS Chairman and CEO. “Companies are transitioning from destructive cost-plus and match the competition approaches to science-based and value driven pricing systems.” PROS found more than half of respondents use market/competitor based, and nearly 17% of respondents use cost-plus as the primary driver of their final price. Only 19% of respondents indicated value-based pricing is the primary driver of final price.

Poor integration and fragmentation of pricing systems make change management and data integration high priorities for typical pricing software implementations.

Any company implementing pricing software must have a time-to-value plan and a keen understanding of data integration requirements. PROS found 86% of respondents indicated “enabling pricing management” IT systems need improvement.

Science, software, and experience are critical in assessing vendor viability

Advanced science-based tools, deep industry experience, and real-time optimization at the time the deal is made are the most important factors in determining vendor viability, with 74%, 67%, and 55% of respondents respectively ranking these elements as important to extremely important. In a follow-up question, scalable high-performance, real-time architecture was identified by participants as a key focus along with optimization capabilities, vendor viability, and strength of science in pricing applications.

To request a copy of the survey results, contact us at info@prospricing.com.

Methodology

As part of the PROS 14^th Annual Summit – 2008, PROS surveyed more than 100 senior executives with pricing responsibility from multiple industries. Participating corporate executives represent industries including but not limited to process and discrete manufacturing, high-tech, petroleum and chemicals, medical and pharmaceutical, distribution, CPG, financial and professional services, equipment, shipping, and travel/transportation. Participants included executives from over 20 countries with participants solicited from over 40 countries. Executives were solicited to complete a survey before or during the PROS 14^th Annul Summit on April 20-23, 2008. The goal of the survey was to pinpoint common pricing challenges and gauge the breadth and depth of experience in working with enterprise pricing software solutions for a broad spectrum of companies and industries.

About PROS

PROS Holdings, Inc. (NYSE: PRO) is a leading provider of pricing and revenue optimization software products, specializing in price analytics, price execution and price optimization. By using our software products, our customers gain insight into their pricing strategies, identify detrimental pricing practices, optimize their pricing decision-making and improve their business processes and financial performance. PROS' software products incorporate advanced pricing science, which includes operations research, forecasting and statistics. PROS’ high performance software architecture supports real-time high volume transaction processing and allows PROS to handle the processing and database requirements of the most sophisticated and largest customers, including customers with hundreds of simultaneous users and sub-second electronic transactions. PROS provides professional services to configure our software products to meet the specific pricing needs of each customer. PROS has implemented over 200 solutions across a range of industries in more than 40 countries. Founded in 1985, PROS is headquartered in Houston, Texas. Today, PROS has over 300 employees, more than 100 with advanced degrees and 20 with Ph.D.s.

Forward-looking Statements

This press release contains forward-looking statements, including statements about the functionality of the PROS products and their ability to manage and forecast across an enterprise. The forward-looking statement contained in this press release are based upon PROS historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates or expectations will be achieved. Factors that could cause actual results to differ materially from those described herein include PROS ability to develop new products and product enhancements with the required functionality desired and PROS ability to implement and support successfully its products to the expectations of its customers. Additional information relating to the uncertainty affecting the PROS business are contained in PROS filings with the Securities and Exchange Commission. These forward-looking statements represent PROS expectations as of the date of this press release. Subsequent events may cause these expectations to change, and PROS disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

PROS
Corporate Communications, 713-335-5197
CorpComm@prospricing.com